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Cheap ammo will be your weak link. Do to availability of "cheap" ammo, .223 and .308 are probably your top choices in caliber.
We are gonna have to know what you consider cheap and what exactly you expect out of this set up.
Not sure what your planning on using it for but IMO I got an excellent combo at a good price, I also stuck on a browning sling, DedNutz scope mount, butler creek flip scope caps, and a butt stock shell holder.
This will be strictly for range fun or picking sage rats if I get lucky enough to get called out to a ranch to clear em. I don't hunt anymore.
per a previous suggestion the Mosin 7.62x54r is looking rather attractive at 18-25 cents per round here http://gun-deals.com/ammo
Personally and biasly, I like the M91/30. a good pick-of-the-litter on a sale day at Big 5 will have you payin' 100 bucks.
7.62x54R is still mostly easy to find. Surplus is "cheap" but "high-maintenance" if you want to keep your rifle hitting those long ranges. (which is where the pick-of-the-litter comes in) not all of em can do it, but a few of the diamond-in-the-roughs will. Wolf and Barnaul will be your low-maintenance mid-range rounds. And, the reloadables, Wolf Gold, Winchester, will run you a buck a bullet.
It's the Red's answer to the 30-06. people been using em for 3 separate centuries, and still use em to hunt, long after their end of production in the 40s.
If you're looking for modern and new, well, 223 or 308 may be your answer.
^^^
This.. I made a recent post explaining the basics of hand selecting a Nagant.. and all of mine that I have scout scoped have been in the 2 MOA region.. that's well within "minute of gong" at 500 yards